Q-Cells of Germany was the world market leader in solar panels when Anton Milner, chief executive, was asked about the threat of competition from Asia. His response was dismissive. German customers would never buy a Chinese product that had to last 20 years, he maintained.
A few years on, China’s Suntech Power has outsmarted and outsold the German company, and Mr Milner is no longer in office. Q-Cells’ stock market value has collapsed from €11bn at the end of 2007 to about €390m. Besides Suntech, Chinese rivals such as Yingli Green Energy and JA Solar are also flooding Germany with cheap but reliable panels, while large parts of the domestic industry are in the doldrums.
Q-Cells provides a cautionary tale for corporate Germany. Just as the country’s machine tool makers, car companies and electrical engineering groups have brought their plants back to full speed following the sharp economic decline of 2009, the next big challenge appears on the horizon.